Marcal Paper Mills Inc. will permanently close its mill...

MECHANIC FALLS, Maine -- Marcal Paper Mills Inc. will permanently close its mill employing about 160 people on Nov. 2 due to rising costs and a decline in orders, the company president says.

The Marcal mill has been in financial trouble for months, laying off workers and gradually tapering its production operations.


In announcing the planned shutdown Wednesday, Marcal President Robert L. Marcalus cited the 'economic condition of the company as a whole coupled with the substantial fall off in the demand for the product of the mill.'

The mill produces tissues, paper napkins and paper towels.

Marcalus said the company would begin to gradually eliminate various productions operations until the scheduled closing date.

He said it's possible the mill could stay open if it is sold or if the company gets a sudden rush of orders.

'If the plant is not sold or reopened by us by Nov. 2, we plan to terminate all present emloyees at that time, except for the small number which will be needed to complete winterizing the plant,' Marcalus said.

However, he said it appeared unlikely the plant will be in operation after November.


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